Argentina’s Rent Tax Exemption Prompts Rethink for Landlords in Monotributo

Overview

• The labor reform now exempts residential rental income from Income Tax retroactive to January 1, 2026, adding to the existing VAT exemption.
• Because monotributo does not exclude exempt incomes, landlords who remain in it must still count rent for categorization and may continue paying the integrated tax component.
• Staying in monotributo can remain attractive for those renting up to two properties as their only activity with contracts registered in the RELI, since the tax quota can be waived upon express registration.
• Owners with additional activities must include rental income for monotributo categorization, which can raise their bracket and in some cases make the general regime more favorable.
• Provincial Ingresos Brutos treatment varies and can shift the cost-benefit calculus, and landlords must keep issuing invoices and consider pension and health coverage if they exit monotributo.